Oil prices higher on China boost, Syria uncertainty

LONDON: World oil prices jumped on Monday on fresh moves by China to boost its economy and as traders tracked an uncertain future for Syria and the wider crude-rich Middle East.

Major stock markets diverged as investors reacted to political crises in South Korea and France.Gold, seen as a haven investment, gained nearly 1.0 per cent.

“The week has kicked off on a largely upbeat tone following the welcome announcement that Chinese authorities plan to enact further stimulus over the year ahead,” noted Joshua Mahony, analyst at traders Scope Markets.

“This shift has already fuelled sharp gains in key assets, with the Hang Seng surging 2.8 per cent and commodities like copper, zinc, iron ore, and palladium rallying on expectations of increased demand.”Oil prices rose more than 1.0 per cent as traders tracked developments in Syria after president Bashar al-Assad fled the country over the weekend as Islamist-led rebels swept into Damascus.

Investors also reacted to news China where President Xi Jinping and other top leaders said on Monday they would adopt a more “relaxed” approach to monetary policy as they hashed out plans to boost the economy next year.

The world’s second-largest economy is battling sluggish domestic consumption, a persistent crisis in the property sector and soaring government debt -- all of which threaten Beijing’s official growth target for this year.

Leaders are also eyeing the second term of Donald Trump in the White House, with the president-elect indicating he will reignite his hardball trade policies, fuelling fears of another standoff between the superpowers.

On Monday, South Korean stocks tumbled as the country was racked with political uncertainty after President Yoon Suk Yeol escaped impeachment following his brief imposition of martial law last week.The won was trading at around 1,432 per dollar Monday, compared with 1,413 on Friday.

The euro rose against the dollar, having taken a hit last week when France’s new government fell after a no-confidence vote.The Paris stock market rose in midday deals Monday.President Emmanuel Macron, who had faced calls to step down, lifted sentiment when he said would serve out his term and that a budget could be passed in the coming weeks.

Macron held talks with French political leaders on the left and right on Friday as he sought to quickly name a new prime minister after Michel Barnier´s ouster over his 2025 budget plan.The European Central Bank is expected to lower borrowing costs this week.